Etude PwC sur les introductions en bourse en Europe Q1 2013
Vccedge Q1 2010
1. A RESEARCH PUBLICATION | April 2010
QUARTERLY DEAL UPDATE
Q1 2010 Statistics and analysis of Private Equity, Venture Capital
and Mergers & Acquisitions in India
3. QUARTERLY REPORT
EXECUTIVE SUMMARY
VCCEdge puts the Indian dealscape in context by Mergers & Acquisitions…
bringing to you a set of statistics analyzing Indian
Deal value rose to $19,198 million in Q1 2010, up from
M&A, private equity and venture capital activity
$5,195 million in Q1 2009.
during the first quarter of 2010.
The number of domestic deals doubled from 39 deals
Private Equity… worth $2,270 million in Q1 2009 to 80 deals worth $4,069
Total private equity investment in India went up million in Q1 2010.
by more than 185% from $675 million in Q1 2009 In terms of volume, the number of outbound deals more
to $1,943 million in Q1 2010. than doubled from 24 in Q1 2009 to 51 in Q1 2010, while
The median deal amount and the average value in terms of value the increase was more than 7X, primarily
of private equity deals in Q1 2010 increased to due to the Bharti – Zain deal.
$10 million and $26 million respectively from $8
The number of inbound deals increased to 29 in Q1 2010
million and $19 million in 2009.
from 24 deals in Q1 2009.
Utilities, Consumer Discretionary & Financials
Telecommunication Services, Energy and Healthcare
were the most targeted sectors for investment
were the most targeted sectors with deals worth $14,036
with deals worth $484 million, $440 million and
$403 million respectively.
million, $1,172 million and $961 million respectively in the
latest quarter.
There were 32 exits worth $824 million in Q1
2010 as compared to only 9 exits in Q1 2009.
3
4. PRIVATE EQUITY
INTRODUCTION
After a turbulent 2009, private equity investments in India For the quarter ended March 2010, total announced deal value
displayed steady signs of recovery in the first quarter of 2010. was $1,943 million, a jump of more than 185% from $675 million
This was helped by improved GDP numbers, stability in the in Q1 2009. Total deal count in Q1 2010 also increased by 35% to
business environment and an impressive recovery in the Indian 88 deals, up from 65 in Q1 2009. Interestingly, despite the
stock market; which exhibited higher investor confidence, enormous growth in deal value on a quarter-on-quarter basis, the
narrowing spreads and reduced volatility. The latest quarter deal count decreased by 11% to 88, down from 99 in Q4 2009.
registered the highest value of deals since 2009.
Exhibit 1:Private Equity Deal Flow in India
6000 190 200
$5,508
166 $5,184 180
$5,229
5000 149 160
133
140
4000
114 113
105 $3,345 120
Deal Volume
Deal Value ($ Mn)
100 99
93
3000 $2,605 81 $2,734 84 88 100
$2,555
73
66 65 $2,065 65 80
88 62 $1,943
2000 $1,697 $1,604
44 45 $1,526 $1,413 60
$1,246
$1,138 $1,178
40
1000 $716 $691 $675
$422 $379 20
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2005 2006 2007 2008 2009 2010
Value($Mn) Volume (Source: VCCEdge)
4
5. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 3:Median Deal Amount breakdown
16 15 15
14
Exhibit 2: Private Equity Breakdown 12
10 10
500 10
Angel 8
8
389 386 VC 8
400
PE 6
291
300 4
204 2
200 180
116 0
82 99 83
100 67 2005 2006 2007 2008 2009 Q12010
35
5 15 20 18 12 4 17 (Source: VCCEdge)
0 Exhibit 4: Average deal size in ($million)
2005 2006 2007 2008 2009 Q12010 50 46
45
$2208 Mn $7078 Mn $19581 Mn $12243 Mn $4404 Mn $1943Mn
40
35 33
(Source: VCCEdge)
30 26 26
Total number of Venture Capital investments announced in 25
Q1 2010 stands at 17 with an announced value of $117 19
20
14
million as against 23 deals at an announced value of $88 15
million in Q1 2009 and 37 deals amounting to $180 million 10
in Q1 2008. 5
0
2005 2006 2007 2008 2009 Q12010
(Source: VCCEdge)
The median deal amount and the average value in Q1 ’10 increased to
$10 million and $26 million respectively as the volume of larger deals
(particularly deals > $100million) increased.
5
6. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 5: Number of transactions by Deal Size Exhibit 6: Total investment by Deal Size
Q12010
Q12010
Q12009 Q12009
Q12008 Q12008
Q12007 Q12007
Q12006 Q12006
Q12005 Q12005
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Under $ 5mn $5 - $25 mn $25-$50 mn
Undisclosed Under $ 5mn $5 - $25 mn
$25-$50 mn $50 -$100 mn $100+ $50 -$100 mn $100+
(Source: VCCEdge) (Source: VCCEdge)
Private equity deals under $50 million accounted for 91% of Larger deals ($50 million and above) accounted for 54% of
total deal volume in Q1 ‘10. total capital invested in Q1 ’10 as against 43% in Q1 ‘09.
Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10
undisclosed 25 47 79 68 20 12 under $5 m 38 42 42 62 38 17
under $5 m 18 20 24 25 18 13
$5 - $25 m 186 445 497 588 222 529
$5 - $25 m 18 36 38 48 20 46
$25 - $50 m 4 7 23 25 4 9 $25 - $50 m 146 209 433 805 126 351
$50 - $ 100 m 1 2 6 9 2 4 $50 - $ 100 m 52 120 381 620 129 214
$100+ 0 2 6 15 1 4 $100+ 0 430 1202 3153 161 832
(Source: VCCEdge) (Source: VCCEdge)
6
7. PRIVATE EQUITY
SECTORAL BREAKDOWN
Financials , $403 The major private equity deals were investments in Star Health &
Utilities , $484
Allied Insurance, Coastal Projects Pvt. Ltd., Tikona Digital
Networks Pvt. Ltd., Coffee Day Resorts & Hotels Ltd. and Asian
Genco Pte Ltd. Other sectors, which have significantly contributed
to private equity deal value in Q1 2010, are Information
Technology and Industrials accounting for 14% of total deal value.
Utilities , 5
Industrials , 7
Information
technology , $134 Financials , 23
Industrials , $131
Consumer
Discretionary , $440
Exhibit 7: Top 5 Sectors by Deal Value in 2010 ($mn) Consumer
(Source: VCCEdge) Discretionary , 17
Utilities, Consumer Discretionary & Financials were the most
targeted sectors for investment with deals worth $484 million,
$440 million and $403 million respectively in Q1 2010.
Information
Together, they accounted for more than 68% of total private technology , 19
equity deal value during the quarter.
Exhibit 8: Sector Summary Exhibit 9: Top 5 Sectors by Deal Volume in 2010
Sector Volume Value Average Deal Size (Source: VCCEdge)
Consumer Discretionary 17 440 29
Consumer Staples 5 95 19 The most active sectors in terms of deal volume was Financials
Energy 2 26 13 with 23 deals in the quarter, followed by Information Technology
Financials 23 403 22 and Consumer Discretionary with 19 and 17 deals respectively.
Health Care 5 82 16 Other sectors contributing to the deal volume were Industrials &
Industrials 7 131 19 Utilities accounting for 7 and 5 deals each.
Information Technology 19 134 10
Materials 1 35 35
Telecommunication Services 4 112 37
Utilities 5 484 97 7
(Source: VCCEdge)
8. PRIVATE EQUITY
SECTORAL BREAKDOWN
ENERGY INDUSTRIALS
$324
30 $26 3 400 20
$20
300 $239 12 18 19 15
20 2
2 2 200 $144 $131 10
1 $112
10 1 11
$3 100 5
$0 0 7
0 0 0 0 0
$0
Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1
2009 2010 2009 2010
Value($ Mn) Volume Value($ Mn) Volume
(Source: VCCEdge) (Source: VCCEdge)
The Oil & Gas Exploration & Production sub-industry led this Deal volume in Q1 2010 decreased by 63%.
sector with 2 deals in Q1 2010. Invested capital decreased by 60% from the $324 million spent
Energy accounted for 1.3% of deals in Q1 2010. in Q4 2009.
Industrials accounted for 6.7% of deals in Q1 2010.
MATERIALS
150 10 CONSUMER DISCRETIONARY
7 500 $440 20
100 14
400 14 15
$54 $98 5 10 17
300 15 $238
50 $35 10
1 200 $164
$17
1 $1 1 $58 $74 5
0 2 0 100
Q1 Q2 Q3 Q4 Q1 0 0
Q1 Q2 Q3 Q4 Q1
2009 2010
Value($ Mn) Volume 2009 2010
(Source: VCCEdge)
Value($ Mn) Volume (Source: VCCEdge)
Materials was not popular among the investors. The sector
saw 1 deal at a value of $35 million in Q1 2010. Consumer Discretionary accounted for 22.6% of deals in Q1 2010.
8
9. PRIVATE EQUITY
SECTORAL BREAKDOWN
CONSUMER STAPLES FINANCIALS
200 $174 10 500 $403 25
400 $371 20
150 $95 22 23
300 15
100 3 5 5 $119 17 $205
3 2 200 $162 10
50
$1 3 $5 $10 100 10 5
8
0 0
0 0
Q1 Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4 Q1
2009 2010
2009 2010
Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)
Value($ Mn) Volume
The Agricultural Products sub-industry led this sector with 4 deals
The Financials sector saw 23 deals at a value of $403 million in
in Q1 2010.
Q1 2010.
Consumer Staples accounted for 4.9% of deals in Q1 2010.
The sector accounted for 20.7% of deals in Q1 2010.
HEALTH CARE INFORMATION TECHNOLOGY
150 $136 10 400 25
$331
6 20 17 19 20
100 5 5 300
8 14
5 15
3 $91 $82 200 $144 9 $155 $134 10
50 $27
$30 100 5
$27
0 0
0 0
Q1 Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4 Q1
2009 2010
2009 2010
Value($ Mn) Volume
(Source: VCCEdge) Value($ Mn) Volume
(Source: VCCEdge)
Healthcare saw 5 deals at a value of $82 million in Q1 2010.
The sector accounted for 4.2% of deals in Q1 2010. Information Technology accounted for 6.9% of deals in Q1 2010.
9
10. PRIVATE EQUITY
SECTORAL BREAKDOWN
TELECOMMUNICATION SERVICES UTLITIES
300 $271 6 600 10
$484
9 8
4
200 4 400
3 6
$112 $222
$197 5 4
100 2 200
2 4
1 2
1 $67
$62
$1 $0 $50
0 0 0 0 1 0
Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1
2009 2010 2009 2010
Value($ Mn) Volume Value($ Mn) Volume
(Source: VCCEdge) (Source: VCCEdge)
Telecommunication Services saw 4 deals at an announced Utilities industry saw 5 deals at an announced value of $484
value of $122 million. The sector accounted for 5.8% of deals in million in Q1, 2010.
Q1 2010. • The sector accounted for 24.9% of deals in Q1 2010.
As seen in Q1 2009, Q1 2010 also saw a large number of deals in
Information Technology and Financials sectors.
10
11. PRIVATE EQUITY
REGIONAL OUTLOOK
A detailed analysis on the existing and DELHI
developing infrastructure, manufacturing (Metro City - Fast industrial & economic
clusters and consumer markets has brought to growth; Several auto components
the fore key locations that have witnessed manufacturers, general manufacturing
Amritsar
increased Private Equity investment. clusters )
Jalandhar
Dehradun
Ludhiana
Top 5 States by deal value Top 5 City Investments
States Volume Value ($ mn) State Volume Value ($ mn)
Jaipur Lucknow
Maharashtra 21 420 Kanpur Mumbai 20 420
Karnataka 14 313 Bangalore 14 313
Ahmedabad Bhopal
Andhra Pradesh 5 109 Hyderabad 4 102
Indore
Baroda
Delhi 5 90 Delhi 5 90
Surat
Tamil Nadu 7 82 Mumbai Chennai 6 75
(Source: VCCEdge) (Source: VCCEdge)
Pune Hyderabad
Vizag
MUMBAI
(Financial capital of India; Fast industrial & HYDERABAD
economic growth; preferred destination Tier I
Bangalore Chennai (IT/ITES and pharmaceuticals hub )
for companies)
Mangalore Tier II
Mysore
BANGALORE
(IT hub of India; Garments and textile Coimbatore CHENNAI
clusters & emerging biotechnology (Metro city; IT & manufacturing hub
industry) Cochin and healthcare industries)
11
12. PRIVATE EQUITY
TOP 5 DEALS IN 2010
Exhibit 10: Top 5 Private Equity deals in Q1 2010
S No. Target Buyer Value ($ Mn)
Morgan Stanley Infrastructure Partners, General Atlantic LLC, Goldman
1 Asian Genco Pte Ltd. Sachs, Norwest Venture Partners, Everstone Capital 425
Kohlberg Kravis Roberts & Co., New Silk Route Partners, Standard Chartered
2 Coffee Day Resorts & Hotels Ltd. Private Equity 200
3 Tikona Digital Networks Pvt. Ltd. Indivision India Partners, Oak Investment Partners, Goldman Sachs 107.1
4 Star Health & Allied Insurance Co. Ltd. ICICI Venture Ltd., Sequoia Capital India, The Carlyle Group 100
Fidelity International Ltd., Sequoia Capital India, Baring Private Equity Asia,
5 Coastal Projects Pvt. Ltd. Deutsche Bank AG 55.15
Top 5 deals accounted for more than 45% of the total private equity deals in Q1, 2010.
Morgan Stanley Infrastructure Partners and others invest $425 MN in Asian Genco Pte Ltd.
Morgan Stanley Infrastructure Partners, General Atlantic LLC, Goldman Sachs Investment Management, Norwest Venture Partners
and Everstone Capital invested $425 million (INR 19.33 billion) in Asian Genco Pte Ltd.
The company will use these funds for grow their power generation assets across India.
Wong Partnership LLP acted as legal advisor to Asian Genco Pte Ltd. on the deal.
Asian Genco is an infrastructure company with investments in Indian power generation assets and engineering services
businesses.
(Source: VCCEdge)
12
13. PRIVATE EQUITY
TOP 5 DEALS IN 2010
Kohlberg Kravis Roberts & Co. and others invest $200 MN in Coffee Day Resorts & Hotels Ltd.
Kohlberg Kravis Roberts, New Silk Route Partners and Standard Chartered Private Equity acquired 20% stake in Bangalore based
Coffee Day Resorts & Hotels Ltd. for a price of $200 million (INR 9.21 billion).
The company will use the proceeds to increase the number of retail outlets and also add international locations to its portfolio in
Austria, Pakistan and Dubai.
AZB Partners, Simpson, Thacher & Bartlett acted as legal advisor to KKR and Dua Associates, Tatva Legal advised Coffee Day on the
deal.
Coffee Day Resorts & Hotels Ltd., a wholly owned subsidiary of Amalgamated Bean Coffee Trading Co. Ltd., owns and operates
hotels and resorts.
(Source: VCCEdge)
Indivision India Partners and others invest $107 MN in Tikona Digital Networks Pvt. Ltd.
Goldman Sachs Investment Partners, Indivision India Partners and Oak India Investments acquired 70% stake in Mumbai based
Tikona Digital Networks Pvt. Ltd. for a price of $107.1 million (INR 5 billion).
The company will use the funds to expand its network coverage to 50 cities by 2010 from 10 cities.
Tikona Digital Networks designs and develops wireless broadband services for home and enterprise customers in India. TDN
provides edge voice, video, IT applications and multimedia content services over any broadband or IP centric network.
(Source: VCCEdge)
13
14. PRIVATE EQUITY
TOP 5 DEALS IN 2010
ICICI Venture and others invest $100 MN in Star Health & Allied Insurance
ICICI Venture Ltd., Sequoia Capital India and Carlyle Group acquired 40% stake in Chennai based Star Health & Allied Insurance Co.
Ltd. for a price of $100 million (INR 4.5 billion).
The deal values the target company at $250 million (INR 11.25 billion).
MAPE Advisory Group acted as financial advisor to Star Health and Ernst & Young advised the investors on the deal.
Star Health & Allied Insurance Co. Ltd. provides individual and group health insurance products in India.
(Source: VCCEdge)
Fidelity International Ltd. and others invest $55 MN in Coastal Projects Pvt. Ltd.
Deutsche Bank AG, Fidelity International Ltd. Sequoia Capital India, Baring Private Equity Asia acquired 16% stake in Hyderabad
based Coastal Projects Pvt. Ltd. for a price of $55.15 million (INR 2.5 billion).
The company will use the funds for the working capital purposes. Coastal Projects Pvt. Ltd. is executing over 300 kms of tunnel
work in Andhra Pradesh, Karnataka, Kerala, Himachal Pradesh and several north-eastern states.
Motilal Oswal Investment Advisors acted as the financial advisor to Coastal Projects on the deal.
(Source: VCCEdge)
14
15. PRIVATE EQUITY
PRIVATE EQUITY EXITS
Exhibit 11: Top Private Equity Exits in Q1’ 10
S.No. Target Buyer Exit Type Deal Value ($ mn)
1 Aamby Valley Ltd. Siva Ventures Ltd. Buyback 323
2 India Infoline Investment Services Pvt. Ltd. Orient Global Tamarind Fund Pte Ltd Buyback 72
3 Sun TV Network Ltd. Nalanda India Fund Open market 61
4 Jubilant Foodworks Ltd. The India Private Equity Fund, JP Morgan Partners IPO 58
Reliance India Power Fund, Tano India Private
5 Ravin Cables Ltd. Equity Fund M&A 44
(Source: VCCEdge)
Secondary
Buyback, 4
M&A, 8 Sales, 2
IPO, 5
Open
Market, 13
Exhibit 12: Private Equity Exits in Q1’ 10
There were 32 exits worth $824.44 million in Q1, 2010. In
comparison there were only 9 exits each in Q1’09.
15
16. MERGERS & ACQUISITION
INTRODUCTION
M&A activity in India has surged over the last few quarters. Total
announced deal value in Q1 2010 was $19,198 million, a 250%
increase over the $5,195 million witnessed in Q1 2009 and a 265% The year ahead will see an increase in value and volume of
increase over Q4 2009. The total deal count also increased by 70% Indian M&A activity as investor confidence and liquidity
to 167 in Q1 2010 from 98 in Q1 2009. return to the market. Strategic investors will try to take
advantage of lower valuations in the midst of the crisis and
strengthen their position across various sectors.
Exhibit 13:M&A Deal Flow in India
25000 167 180
$21,671 157
152 148 160
146
20000 $19,198
128 125 125 140
118 117
108 112 135 120
104
Deal Value ($ Mn)
15000 97 $15,301 98 95
87 100
80
Deal Volume
66 $9,518 80
10000 62
$7,856
$6,744 $5,199 60
$4,977 $4,952 $5,195 $5,249
$3,940 $4,116 40
5000 $3,215 $3,152
$3,021 $2,761 $2,943
$1,485 20
$747 $959
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2005 2006 2007 2008 2009 2010
Value($Mn) Volume (Source: VCCEdge)
16
17. MERGERS & ACQUISITION
DEAL BREAKDOWN
The number of domestic deals increased from 68 and 39 Exhibit 14: M & A Breakdown
in Q1 2008 & Q1 2009 respectively to 80 in Q1 2010. The 250 234
value of domestic deals was $4,069 million in Q1 2010 215 207 Domestic
194
compared to $2,270 million in Q1 2009. 200 Inbound
153 162
147 Outbound
In terms of volume, the number of outbound deals more 150 135
than doubled from 24 in Q1 2009 to 51 in Q1 2010, while 106 111
100 86 89 80
in terms of value the increase was more than 7X from 66 70
$1,862 million to $13,236 million. 51
50 37 29
The number of inbound deals increased to 29 in Q1 2010
0
from 24 deals in Q1 2009 at a higher value.
2005 2006 2007 2008 2009 Q12010
$7912 Mn $25891 Mn $32850 Mn $27458 Mn $14296 Mn $19198 Mn
Exhibit 15:Median Deal Amount breakdown (Source: VCCEdge)
40 Exhibit 16: Median deal amount by deal type
33 50 46
30
40
43
40 40
19
20 18 30 26
15 15 25 25
12
10 20 24 21
21 19 20
18
10
0 12 8
8
7 6
2005 2006 2007 2008 2009 Q12010 0
(Source: VCCEdge) 2005 2006 2007 2008 2009 Q12010
Domestic Inbound Outbound
(Source: VCCEdge)
The median deal amount in Q1 2010 increased to $33 million as the volume of larger
17
deals (particularly deals > $100 million) increased.
18. MERGERS & ACQUISITION
DEAL BREAKDOWN
Exhibit 17: Number of transactions by Deal Size Exhibit 18: Total investment by Deal Size
Q1'10 Q1'10
Q1'09 Q1'09
Q1'08 Q1'08
Q1'07 Q1'07
Q1'06 Q1'06
Q1'05 Q1'05
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
under $5 mn $5 - $25 mn $25 - $50 mn
undisclosed under $5 mn $5 - $25 mn
$50 - $ 100 mn $100+
$25 - $50 mn $50 - $ 100 mn $100+ (Source: VCCEdge)
(Source: VCCEdge)
M&A deals under $100 million accounted for 80% of total Larger deals ($100 million and above) accounted for 90% of
deal flow in Q1 2010. total capital invested in Q1 2010 as against 86% in Q1 2009.
Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10
undisclosed 33 49 58 95 46 81
under $5 m 32 48 46 25 30 27
under $5 m 14 19 22 9 27 19
$5 - $25 m 106 217 247 256 97 275
$5 - $25 m 10 18 22 20 8 20
$25 - $50 m 238 371 315 470 191 650
$25 - $50 m 7 10 8 13 5 17
$50 - $ 100 m 1 3 1 7 5 12 $50 - $ 100 m 71 183 81 451 400 871
$100+ 1 9 14 8 7 17 $100+ 300 2201 20984 6654 4477 17376
(Source: VCCEdge) (Source: VCCEdge)
18
19. MERGERS & ACQUISITION
SECTORAL BREAKDOWN Industrials, $757
Financials, $805
The major transactions were the acquisitions of Zain Africa BV, Tower
Health Care, $961 assets of Aircel, Parkway Holdings Ltd. and Trinity Coal Corp.
Energy, $1,172
Materials, 16
information
Technology , 38
Financials, 20
Telecommunication
Services, $14,036
Exhibit 19: Top 5 Sectors by Deal Value in 2010 ($mn)
(Source: VCCEdge)
Telecommunication Services, Energy and Healthcare were the
most targeted sectors for acquisitions with deals worth $14,036 Consumer
million, $1,172 million and $961 million respectively. Together, Industrials, 28 Discretionary, 28
they accounted for 84% of total private equity deal value during
the quarter. Exhibit 21: Top 5 Sectors by Deal Volume in 2010
Exhibit 20: Sector Summary
(Source: VCCEdge)
Sector Volume Value Average Deal Size
Information Technology 38 110 16
Consumer Discretionary 28 570 47
The most active sectors in terms of deal volume was Information
Industrials 28 757 47 Technology with 38 deals in the quarter, followed by Consumer
Financials 20 805 62 Discretionary and Industrials with 28 deals each. Other sectors
Materials 16 325 41 contributing to the deal volume were Materials & Financials
Consumer Staples 12 430 54 accounting for 20 and 16 deals respectively.
Healthcare 8 961 160
Energy 7 1172 167
Telecommunication Services 7 14036 2005
19
Utilities 3 34 34
21. MERGERS & ACQUISITION
SECTORAL BREAKDOWN
CONSUMER STAPLES FINANCIALS
500 12 $430 15
400 1000 $805 25
$819
8 $376 12 10 800 20
300
5 5 600 20 15
200 $205 10
5 400 14 14 10
$217
100 $97 11
$0 $3 200 $71 5
0 0 0 0
Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1
2009 2010 2009 2010
Value($ Mn) Volume Value($ Mn) Volume
(Source: VCCEdge)
(Source: VCCEdge)
Invested capital increased by 17% in Q1 2010.
Financials accounted for 4.2% of deals in Q1 2010.
Consumer Staples accounted for 2.2% of deals in Q1 2010.
HEALTH CARE INFORMATION TECHNOLOGY
800 40
1500 12 15 $654
11 $1,050
600 38 30
$961
1000 10 28
11 400 20
5 22 $243
500 $410 8 5 200 $118
17 $123 $110 10
$235 $226 14
0 0
0 0
Q1 Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4 Q1
2009 2010
2009 2010
Value($ Mn) Volume
Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)
Deal volume decreased by more than 33%. Deal volume increased by more than 32%.
Invested capital increased by 134% in Q1 2010. Invested capital decreased by more than 50 % in Q1 2010.
21
22. MERGERS & ACQUISITION
SECTORAL BREAKDOWN
TELECOMMUNICATION SERVICES UTLITIES
16000 9 140 $132 7
$14,036
14000 120 6
12000 6
100 5
7 6
10000 5
6 80 4
8000 4 3
60 3
6000 4 3 $37 $34
4000 40 1 2
3 3
2000 20 1
$791 $201 $41 $403 $0 $0
0 0 0 0
Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1
2009 2010 2009 2010
Value($ Mn) Volume Value($ Mn) Volume
(Source: VCCEdge) (Source: VCCEdge)
Telecommunication Services accounted for 73% of deals in Deal volume decreased by more than 40%.
Q1 2010. Invested capital decreased by 8% in Q1 2010.
As seen in Q1 2009, Q1 2010 also saw a large number of deals in
Information Technology.
22
23. MERGERS & ACQUISITION
REGIONAL BREAKDOWN DELHI
(Metro City - Fast industrial & economic
growth; Several auto components
manufacturers, general manufacturing
GUJARAT clusters )
Amritsar
(Oil and Natural Gas producers and
Jalandhar
Manufacturers of Wool, Silk, Synthetic Fibers,
Dehradun
Textiles, Basic Metals, Alloys, Rubber, Plastic, Ludhiana
Top 5 states according to deal value
Petroleum, Transport Equipments and Parts,
Coal Products) State Volume Value ($Mn)
Jaipur
Kanpur Lucknow Maharashtra 34 1969
Delhi 6 769
Ahmedabad Bhopal Karnataka 18 363
Indore Tamil Nadu 11 233
Baroda
Gujarat 5 192
Surat
(Source: VCCEdge)
Mumbai
Pune Hyderabad
Vizag Tier I
Tier II
MAHARASHTRA
(Fast industrial & economic growth;
preferred destination for companies)
Bangalore Chennai
TAMIL NADU
Mangalore (Electronics, software, auto components,
Mysore pharmaceuticals, leather hub)
KARNATAKA
(IT hub; Garments and textile clusters & Coimbatore
emerging biotechnology industry)
Cochin
23
24. MERGERS & ACQUISITION
TOP 5 DEALS IN 2010
Exhibit 22: Top M&A deals in Q1 2010
S. NO. Target Buyer Type Price ($ million)
1 Zain Africa BV, African Operations Bharti Airtel Ltd. Outbound 10700
2 Aircel Ltd., Tower Assets GTL Infrastructure Ltd. Domestic 1800
3 Parkway Holdings Ltd. Fortis Healthcare Ltd. Outbound 685
4 Trinity Coal Corp. Essar Group Outbound 600
5 Unitech Wireless Ltd. Telenor ASA Inbound 433
The top 5 deals accounted for more than 71% of the total M&A deals in Q1 2010.
Acquisition of the African Operations of Zain by Bharti Airtel Ltd.
Bharti Airtel Ltd. entered into a definite agreement to acquire African operations of Zain Africa BV for a price of
$10.7 billion (INR 493.56 billion).
The buyer will pay $9 billion (INR 415.14 billion) in cash and will assume debt of $1.7 billion (78.41 billion).
Zain Africa BV provides mobile telecommunication services in the Middle East and African continent. The company
offers mobile voice and data services to individual and business customers.
(Source: VCCEdge)
24
25. MERGERS & ACQUISITION
TOP 5 DEALS IN 2010
Acquisition of Tower Assets of Aircel Ltd. by GTL Infrastructure Ltd.
GTL Infrastructure Ltd. acquired tower assets of Aircel Ltd. for a price of $1.8 billion (INR 84 billion).
The debt for the deal was syndicated by SBI Capital Markets Ltd. Citigroup Inc and Barclays Capital acted as financial
advisors for GTL Infrastructure Ltd. Nomura, Rothschild and Standard Chartered Bank acted as financial advisors for
Aircel Ltd.
Wadia Ghandy advised GTL and Amarchand advised Aircel on the deal.
(Source: VCCEdge)
Fortis Healthcare Ltd. invested in Parkway Holdings Ltd.
Fortis Healthcare Ltd. acquired 23.9% stake in Singapore based Parkway Holdings Ltd. from TPG Capital for
approximately $685.3 million (INR 31.10 billion).
AZB & Partners acted as legal advisor to Fortis Healthcare Limited on the deal.
Parkway Holdings Ltd. provides health care services.
(Source: VCCEdge)
25
26. MERGERS & ACQUISITION
TOP 5 DEALS IN 2010
Essar Group acquired Trinity Coal Corp.
Essar Group agreed to acquire Trinity Coal Corp. for approximately $600 million (INR 27.47 billion) from Denham
Capital Management LP.
Trinity Coal Corp. is a coal producing company.
(Source: VCCEdge)
Telenor ASA acquired stake in Unitech Wireless Ltd.
Telenor ASA acquired 7.15% stake in Unitech Wireless Ltd. for a price of $433.36 million (INR 20.22 billion).
The additional investment will allow Uninor to proceed as per the business plan and successfully expand operations
in India. This is the fourth and final round of investment from the Telenor group, which is to inject a total of INR
61.20 billion for a 67.25% stake in the joint venture with Indian real estate company Unitech Ltd.
Unitech Wireless Ltd. is a telecom services player in India. It has licenses to operate in all 22 circles across the
country.
(Source: VCCEdge)
26
27. JUST LAUNCHED
Public Company Comparables
VCCEdge is an online financial research platform Choose your comp set and see EV/EBITDA, EV/EBIT,
EV/PAT and EV/Revenue using our proprietary comp
brought to you by The VCCircle Network. tool for back of the envelope valuations.
Enhanced Industry Classification
Companies Screen companies and data on the basis of 10 Sectors,
VCCEdge contains more than 10,000 companies 24 Industry Groups, 68 Industries and 154 Sub-
searchable on various parameters including industry Industries.
and geography.
Private Company Financials
Intelligence Now see financial data for private equity funded
VCCEdge allows users to keep a close tab on deals in companies and M&A targets. Get deep insights and
the market using its innovative tracking tool. deal origination ideas in hot sectors.
Deals Public Company Financials
VCCEdge has all mergers and acquisitions, private Key financial highlights of all Indian listed companies.
equity and venture capital deals in India starting
Powerful Financial Screener
Directories Screen public and private companies on the basis of
VCCEdge contains listings of private equity/venture Margins, Revenue, Profit or any other financial criteria.
capital funds, investment banks and law firms active
For more information: For sales enquiries:
Arjun Bahl I Analyst I VCCEdge Shashank Randev I BDM I VCCEdge
+91-120-4171103 Iarjun@vccircle.com +91-120-4171111 I sales@vccedge.com
